Foot Locker Stock Dips Ahead of Q3 Earnings: Retail Sentiment Slips
By Stocktwits Inc | First Published Dec 4, 2024, 8:09 AM ISTWall Street analysts are expecting earnings per share of $0.40 on estimated revenues of $2.01 billion
Shares of footwear and apparel retailer Foot Locker Inc. ($FL) were down 3.8% on Tuesday afternoon ahead of the company’s third-quarter earnings release, dampening retail sentiment.
Wall Street analysts are expecting earnings per share of $0.40 on estimated revenues of $2.01 billion, according to Stocktwits data.
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For the second quarter, its total sales increased by 1.9%, to $1,89 billion. EPS came in at -$0.05, beating estimates of -$0.07.
Its comparable sales increased by 2.6%, led by the global Foot Locker and Kids Foot Locker comparable sales growth of 5.2%. The company reaffirmed its full-year guidance for non-GAAP EPS to fall between $1.50 and $1.70.
On Tuesday, Piper Sandler lowered the price target on Foot Locker stock to $28 from $30, while keeping a ‘Neutral’ rating, The Fly.com reported. The firm warned that demand softened in October given the lack of “catalysts/warm weather” ahead of the election, the report added.
Retail sentiment on the stock fell to ‘extremely bearish’ from ‘bearish’ a day ago.
In August, the company announced it will move its global headquarters to St. Petersburg, Florida in late 2025. It plans to maintain “only a limited presence” in New York City going forward, it said in an earlier release, in addition to a slew of other measures it said were part of its “Lace Up” plan.
“The intent of the relocation is to further build on the Company's meaningful presence in St. Petersburg and to enable increased collaboration among teams across banners and functions, while also reducing costs,” the company said at the time.
The Lace Up Plan was part of its efforts to simplify its business model and focus on core banners and regions. It also announced it will close stores and ecommerce operations in South Korea, as well as in Denmark, Norway, and Sweden.
Foot Locker stock is down 21% year-to-date.
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